When litigating in New York, seeking summary judgment in lieu of filing a complaint is a powerful mechanism for swiftly resolving claims where it is available. CPLR § 3213 is intended for actions founded upon promissory notes, guarantees, consumer credit agreements, and other written documents where a monetary debt is owed. If you are owed money under a written agreement, you may be eligible for expedited proceedings under CPLR § 3213 by bringing an action for summary judgment in lieu of complaint.
Where available, CPLR § 3213 provides a faster and less costly avenue for a plaintiff to obtain a judgment. Unlike a traditional “plenary action” or lawsuit that begins when a plaintiff files a complaint, under CPLR § 3213, the plaintiff may file for summary judgment in lieu of a complaint, expediting the legal proceedings. In such a proceeding there are no pleadings or discovery, and the action is decided on the papers submitted by the plaintiff. If, however, the plaintiff’s CPLR § 3213 motion is denied, the Court will consider the moving papers to be the complaint, and the responsive papers will be deemed to be an answer, and the case will proceed to discovery. In order to successfully bring the motion for summary judgment in lieu of complaint, the plaintiff must be sure that the written document upon which the action is based qualifies as an “instrument for the payment of money only”.
I. CPLR § 3213 – Motion for Summary Judgment in Lieu of Complaint
The Language of the Statute
CPLR § 3213 provides as follows:
“When an action is based upon an instrument for the payment of money only or upon any judgment, the plaintiff may serve with the summons a notice of motion for summary judgment and the supporting papers in lieu of a complaint. The summons served with such motion papers shall require the defendant to submit answering papers on the motion within the time provided in the notice of motion. The minimum time such motion shall be noticed to be heard shall be as provided by subdivision (a) of rule 320 for making an appearance, depending upon the method of service. If the plaintiff sets the hearing date of the motion later than the minimum time therefor, he may require the defendant to serve a copy of his answering papers upon him within such extended period of time, not exceeding ten days, prior to such hearing date. No default judgment may be entered pursuant to subdivision (a) of section 3215 prior to the hearing date of the motion. If the motion is denied, the moving and answering papers shall be deemed the complaint and answer, respectively, unless the court orders otherwise. The additional notice required by subdivision (j) of rule 3212 shall be applicable to a motion made pursuant to this section in any action to collect a debt arising out of a consumer credit transaction where a consumer is a defendant.”
Definition of "Instrument for the Payment of Money Only"
Central to CPLR § 3213 is the concept of an "instrument for the payment of money only." This term encompasses written documents containing an unconditional promise to pay a specific sum of money. It includes a spectrum of financial instruments, such as promissory notes and guarantees. While CPLR § 3213 is intended to afford plaintiffs expedited relief for a broad range of debt instruments, the definition of "instrument for the payment of money only" is construed narrowly, and any ambiguity regarding a defendant’s obligations under a document will likely result in the denial of a CPLR § 3213 motion. The following debt instruments generally qualify for relief under CPLR § 3213.
Situations Where CPLR 3213 May be Used
Promissory Notes
For a promissory note to qualify under CPLR § 3213, it must embody an unconditional promise to pay a specific sum of money. This requirement ensures clarity and specificity in the obligation undertaken by the party executing the promissory note. The note may indicate that it is immediately due and payable or that it will become payable on a specified date or in specified increments. However, if it conditions the obligation to pay on the occurrence or non-occurrence of any event, the contract is unlikely to qualify as an “instrument for the payment of money only” and a traditional plenary action will generally be required.
Guarantees
Like a promissory note, a guaranty can trigger the application of CPLR § 3213. A guaranty is defined as a written promise to answer for the debt or default of another party. Where the facts surrounding the default are sufficiently simple and clear, guarantees can qualify for summary judgment in lieu of a traditional complaint. To initiate an action under CPLR § 3213 based on a guarantee, the plaintiff must submit the written guarantee and evidence of the default. This may include records of missed payments or other documentation indicating the debtor's default.
Domestication of a Judgment
Where the Plaintiff has obtained a judgment against the defendant in a foreign jurisdiction (including another state or another country), CPLR § 3213 can be used to domesticate that judgment as a judgment of the New York courts. This can facilitate enforcement of that judgment against the debtor’s assets in New York. For a judgment which has been obtained in a state that has adopted the Uniform Interstate Depositions and Discovery Act (UIDDA), it may be possible to obtain discovery of the defendant’s assets without first domesticating the judgment in New York.
II. Procedural Steps: Filing an Action under CPLR § 3213
Affirmation or Affidavit: A crucial step in utilizing CPLR § 3213 is the submission of an attorney affirmation or client affidavit supporting the motion for summary judgment. This document serves as the evidentiary foundation of the action, together with the promissory note, guaranty, or other instrument, affirming the validity of the claim and providing essential details regarding the written instrument, the defendant’s default, and amount owed.
Notice of Motion: Filing a Notice of Motion is a procedural requirement, signaling the plaintiff's intent to pursue summary judgment under CPLR § 3213. This document outlines the relief sought and the grounds for the motion, as well as the date upon which the papers will be submitted to the court for review. In some instances, the court will ask the attorneys for the parties to attend oral arguments. In other instances, the court will decide the motion on the papers without the need for the attorneys of the respective parties to appear.
Service of Papers: Proper service of a summons, the notice of motion, affirmation or affidavit, and relevant exhibits is essential. It ensures that the defendant is informed of the legal proceedings, facilitating a fair and transparent legal process.
Defendant's Response: Following service, the defendant has an opportunity to respond. If the defendant wishes to contest the motion, they must submit opposing papers, including any defenses or counterarguments. If a defendant is properly served but does not respond, the motion may be granted upon default, provided that the written document upon which the action is based qualifies as an "instrument for the payment of money only", and all other requirements are met.
Plaintiff’s Reply: If the defendant files opposition papers, the plaintiff may file additional papers in reply. If the default is sufficiently clear, the court will grant summary judgment. If there are disputed issues of fact that cannot be resolved through a summary judgment motion, the court may convert the proceeding to a plenary action.
III. CPLR § 3213: The Potential for Swift and Efficient Resolutions
Streamlined Process: One of the primary advantages of utilizing CPLR § 3213 is the expedited nature of the legal process. By bypassing the traditional summons and complaint and the drawn-out process of discovery and trial, plaintiffs can obtain a judgment more swiftly, saving both time and resources.
Cost-Effectiveness: The streamlined process may result in cost savings for litigants. With fewer procedural steps and a focus on a written instrument's clear terms, CPLR § 3213 can be a more efficient and cost-effective option.
IV. Conclusion: Utilizing CPLR § 3213 for Expedited Proceedings
In conclusion, CPLR § 3213 provides a valuable tool for litigants seeking swift and efficient resolutions in cases based on written instruments for the payment of money. Our experienced team is adept at navigating the complexities of CPLR § 3213 actions. If you are owed money and are considering pursuing a claim based on a promissory note, guaranty, credit agreement or other debt instrument, contact Marwan Sehwail or any of our attorneys at (917) 932-0299 to schedule a consultation and confirm whether your case qualifies for relief under CPLR § 3213.
About Author
Marwan Faruq Sehwail graduated from the Northwestern University School of Law in 2010. Marwan joined the firm in 2015 and became a partner in 2023. Read more.
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